President Donald Trump has rejected Iran's seven-day plan to reopen the Strait of Hormuz, calling the proposal "not acceptable" as he left the White House on Saturday.

"I turned down their offer. I turned down their agreement," Trump told reporters, adding that he still wanted a deal. "They want to make a deal, and I think that's fine. I like making deals too. But that deal was unacceptable." He said Tehran wanted the strait opened immediately "because they're losing so badly."

Iranian Foreign Minister Abbas Araghchi outlined the plan to reporters at the United Nations on Friday. Iran had conveyed a "concrete seven-day plan" to Washington through Qatar: the United States would lift its naval blockade of Iranian ports, waive sanctions on Iranian oil sales and release an estimated $12 billion in frozen Iranian assets within four or five days. The strait would reopen on day six, and talks on a final agreement would begin on day seven.

A plan built on the June memorandum

Araghchi said the steps asked of Washington were "nothing new", because they were already contained in a memorandum of understanding signed in June. That agreement collapsed within weeks after disputes over its wording, including who would control the strait, and fighting resumed.

The Wall Street Journal reported that Trump privately doubts Iran will meet his demands and has told aides he expects a renewed bombing campaign after the midterm elections. The White House said on Friday that US officials remained in "active and constructive" dialogue with Iran through mediators.

Iranian President Masoud Pezeshkian said in a pre-recorded CBS interview due to air on Sunday that Iran would abide by its commitments and would allow UN nuclear inspectors into the country if Washington accepted the proposal.